Income claimed for relief from taxation refers to income on which a taxpayer seeks to reduce their tax liability through specific government policies or provisions, such as deductions, credits, exemptions, or allowances designed to lessen the amount of tax owed. This can include relief on various types of income like foreign income, arrears or advance salary payments, business profits earned abroad, or income subject to double taxation. Tax relief mechanisms can involve filing forms like Form 10E (for relief on arrears or advance salary) or claiming foreign tax credit relief when taxed by both the UK and another country. Relief is intended to ensure taxpayers do not overpay taxes by accounting for certain expenses, multiple taxations, or specific income categories eligible for reduced taxation.

Explanation of Income Claimed for Relief from Taxation

• Meaning: It is income on which taxpayers apply for tax relief—government policies aimed at reducing taxable income or tax bills via deductions, credits, or exclusions.
• Foreign Income Example: Relief can be claimed on foreign income to avoid double taxation, either by applying for relief before foreign tax or by claiming foreign tax credit relief after tax is paid abroad.
• Salary Arrears/Advance: Income that is received as arrears or advance salary payment may cause additional tax burden in a single year, so relief can be claimed to spread the tax load appropriately.
• Job Expenses: Taxpayers can claim relief on expenses they paid for work that their employer did not reimburse.
• Forms and Claims: Certain reliefs, such as under section 89 or 89A in India or the UK’s Self Assessment system, require filing specific forms or claiming relief via tax returns.

This ensures a fair tax outcome by adjusting taxes owed based on specific income circumstances or expenses incurred, reducing the effective taxable income or tax payable.